NRAU

The growing demand for rentals as a result of the crisis in the construction and real estate market and the lack of affordable rental offers determined that the reform of urban rentals was assumed as a priority objective in the field of housing.

It aims to respond to some of the problems related to urban leasing, namely those relating to contracts with rents prior to 1990, the difficulty in carrying out rehabilitation works on leased properties and the delicate Eviction Action.

The NRAU came into effect in November 2012, through Law No. 31/2012 , later amended by Law No. 79/2014 of December/14, and Law No. 43/2017 of June 14/17. The NRAU introduced several legislative changes in relation to the legal regime of urban leases, of which the following should be highlighted:

Greater freedom in the duration of contracts between the parties

There is no longer a minimum term In the case of rental contracts for housing purposes, there is no longer a minimum term for the contracts, and if the parties do not stipulate a term, the contracts are considered to have been concluded for a certain period of 5 years;

In non-housing contracts, the freedom of the parties to establish the duration of the contract is maintained, providing that, in case of silence by the parties, the contract is considered concluded for 5 years.

Greater emphasis on the negotiation of the parties in updating old rents

In contracts for housing purposes concluded before 1990, the update is based on a mechanism for negotiating the rent by the parties, however, situations of economic need and tenants aged 65 or more or with an equal or greater degree of disability are safeguarded. at 60%;

For non-housing contracts concluded before 1995, a rent negotiation mechanism was also established between the parties, without prejudice to the forecast of a transitional period of 10 years for cases of micro-enterprises.

Duration of the transition period from old contracts to the new regime

After a period of 8 or 10 years, the rent on housing contracts can be updated, with Social Security being responsible for finding an answer to situations of economic need;

Contracts for tenants aged 65 or over or with a degree of disability equal to or greater than 60%, only change regime, or terminate the contract, by agreement between the parties.

New regime for carrying out works in leased buildings

The regime of Law n.º 31/2012, of August 14, of denouncement for demolition or deep works is based on negotiation between the parties, and, in the absence of agreement, there is room for payment of compensation;

The reporting regime for works is completed and developed by Law n.º 30/2012 , and Law n. of urban rehabilitation.

Special eviction procedure

A procedure is envisaged that runs, to a large extent, through extrajudicial means, making the effective vacancy of the leased premises simpler and less time consuming due to the lessee's non-compliance, namely in cases of non-payment of rents, expiry of the contract due to the expiry of the term and of termination of the contract by opposition to renewal or by termination.